STI College, Tanay

Tanay, Rizal

“A Case Study about the differences between Russia and

Poland in terms of Political, Economic, and Legal Practices"

Presented to:
MS. MARY JOY SALLINAS
(Instructor)

Presented by:
ROJUN T. TOLENTINO
(Researcher)

In Partial Fulfillment of the Requirements

in the Subject “International Business and Trade”

2022
 TABLE OF CONTENTS

I. BACKGROUND

A. Russia

B. Poland

II. POLITICAL SYSEM

A. Russia’s Political System

B. Poland’s Political System

C. Analysis

III. ECONOMIC SYSTEM

A. Russia’s Economic System

B. Poland’s Economic System

C. Analysis

IV. LEGAL SYSTEM

A. Russia’s Legal System

B. Poland’s Legal System

C. Analysis

V. CONCLUSION
 A. Russia

B. Poland

VI. REFLECTION

A. Which of the two countries is easier to manage?

B. Which of the two countries is harder to manage?

C. What are the most important points a manager

should remember in managing Russia?

D. What are the most important points a manager

should remember in managing Poland?

VII. REFERENCES
 CHAPTER I: BACKGROUND

A. Russia

Russia is a land of superlatives. By far the world’s largest country, it covers nearly

twice the territory of Canada, the second largest. It extends across the whole of northern

Asia and the eastern third of Europe, spanning 11 time zones and incorporating a great

range of environments and landforms, from deserts to semiarid steppes to deep forests

and Arctic tundra. Russia contains Europe’s longest river, the Volga, and its largest lake,

Ladoga. Russia also is home to the world’s deepest lake, Baikal, and the country recorded

the world’s lowest temperature outside the North and South poles.

The Russian republic was established immediately after the Russian Revolution of

1917 and became a union republic in 1922. During the post-World War II era, Russia was

a central player in international affairs, locked in a Cold War struggle with the United

States. In 1991, following the dissolution of the Soviet Union, Russia joined with several

other former Soviet republics to form a loose coalition, the Commonwealth of

Independent States (CIS). Although the demise of Soviet-style communism and the

subsequent collapse of the Soviet Union brought profound political and economic

changes, including the beginnings of the formation of a large middle class, for much of

the postcommunist era Russians had to endure a generally weak economy, high inflation,

and a complex of social ills that served to lower life expectancy significantly. Despite

such profound problems, Russia showed promise of achieving its potential as a world

power once again, as if to exemplify a favourite proverb, stated in the 19th century by
Austrian statesman Klemens, Fürst (prince) von Metternich: “Russia is never as strong as

she appears, and never as weak as she appears.”

B. Poland

Poland, country of central Europe. Poland is located at a geographic crossroads that

links the forested lands of northwestern Europe to the sea lanes of the Atlantic Ocean and

the fertile plains of the Eurasian frontier. Now bounded by seven nations, Poland has

waxed and waned over the centuries, buffeted by the forces of regional history. In the

early Middle Ages, Poland’s small principalities and townships were subjugated by

successive waves of invaders, from Germans and Balts to Mongols. In the mid-1500s,

united Poland was the largest state in Europe and perhaps the continent’s most powerful

nation. Yet two and a half centuries later, during the Partitions of Poland (1772–1918), it

disappeared, parceled out among the contending empires of Russia, Prussia, and Austria.

Even at a time of national crisis, however, Polish culture remained strong; indeed, it

even flourished, if sometimes far from home. Polish revolutionary ideals, carried by such

distinguished patriots as Kazimierz Pułaski and Tadeusz Kościuszko, informed those of

the American Revolution. The Polish constitution of 1791, the oldest in Europe, in turn

incorporated ideals of the American and French revolutions. Poles later settled in great

numbers in the United States, Canada, Argentina, and Australia and carried their culture

with them. At the same time, Polish artists of the Romantic period, such as pianist

Frédéric Chopin and poet Adam Mickiewicz, were leading lights on the European

continent in the 19th century. Following their example, Polish intellectuals, musicians,

filmmakers, and writers continue to enrich the world’s arts and letters.
 CHAPTER II: POLITICIAL SYSTEM

A. Russia | Individualism - Pseudo-Democracies

Russia is described as a democratic, federative, law-based state with a republican

style of government in the constitution of 1993. The judicial, executive, and legislative

branches each have a portion of the state's power. A mandatory or state-imposed

philosophy may not be embraced, and diversity of philosophies and religions is

encouraged. Human rights abuses involving religious organizations that the government

has classified as "extreme" have, however, become more prevalent over time. The right to

a political system with many parties is upheld. Before becoming effective, laws must get

public approval and be written in conformity with international law and values. Despite

the federation's republics' ability to create their own states, Russian is declared the state

language.

Russian society has historically been quite inclusive and collectivist, but during the

past ten years, there has been a discernible increase in materialism and individualism.

The biggest cities, including Moscow and St. Petersburg, are where this is most obvious.

In general, Russians of all demographics want to secure solid employment and a bright

future so that they can watch their offspring become richer and more successful than they

were.

The educated and urbanized populations have found it easier to absorb cultural

movements toward individualism, and many people are now experiencing fresh success

in the sizable middle class. Russians who were raised in the post-socialist era frequently

have different perspectives than those who experienced the Soviet era. This age gap is
frequently observed in younger generations' propensity for optimism. They frequently

have greater optimism for the future and are more open to incorporating foreign ideas.

Many young people are becoming impatient with public nationalism and conservatism.

This contrasts with some older people who have had a difficult time adjusting and often

have a more negative and fatalistic outlook. They may feel a diminished feeling of

control over their life and be resigned to the concept that it is out of their control after

having experienced a time when the state was in charge of them and decided their well-

being.

Finally, it's crucial to recognize that some Russians would consider the hardships of

the 1990s to have been more socially destructive than the communist system. The Soviet

Union is frequently linked to security. While younger Russians may be affected by

popular national discourse that glorifies the communist era and emphasizes Russia's

victories and role as a worldwide powerhouse at the time, older Russians may experience

nostalgia for a simpler, more predictable time when they were young. Every Russian

family probably has their own particular ideas and recollections about what life was truly

like during the communist era, but these anecdotes are now combined with those

concerning the challenges of "living through the '90s". Indeed, these more recent

experiences are more pertinent to current perspectives; for young Russians, the Soviet era

is mostly understood through history and the personal narratives of their own families.
B. Poland | Individualism - Democracy

After communism was overthrown in 1989, Poland quickly embraced democratic

administration, in large part because of the grassroots organizing techniques honed by the

Solidarity movement in the 1980s, which helped to establish a strong civil society.

Because of the constitutional system of checks and balances and the predictable and

stable political environment that resulted after 1989, Poland was able to join NATO and

the European Union. Following government initiatives and decisions on judicial

independence, unbiased political competition, and an open civil society, fresh concerns

about Polish democracy have emerged.

The National Democratic Institute promoted the growth of a multiparty political

system throughout the 1990s by assisting both center-right and center-left parties in

establishing local affiliates across the nation, recruiting young people and women, and

establishing and enhancing communication channels between party leadership and

members. Participants in NDI training who later held elected office were many.

The National Democratic Institute for International Affairs is a non-profit American

NGO that collaborates with partners in underdeveloped nations to improve the efficacy of

democratic institutions. The primary focus areas of the NDI's programming are gender,

women and democracy, peace and security, political parties, and youth political

participation. Other focus areas include citizen participation, elections, debates,

democratic governance, democracy and technology, and political inclusion of

marginalized groups. The organization's declared goal is to "strengthen democratic

institutions throughout the world by public participation, openness, and accountability in

government."

In order to develop effective solutions to xenophobia and nativism, NDI is actively

assisting leaders in the Jewish, Christian Orthodox, and Islamic communities in

deepening their cooperation with one another and with mainstream religious and cultural

organizations.

As part of its Central Europe Democracy Initiative (CEDI), which enables young

politicians to interact with each other and outside experts on efforts to reinvigorate

mainstream, democratic politics, NDI is also assisting political actors to engage young

people through modernized communication strategies and leadership skills.

Polish democracy promotion has its roots in the anticommunist resistance

movement's history of global cooperation. In an effort to prevent a resurgent Russia,

Poland has undertaken concerted, if occasionally erratic, efforts to assist in the

democratization of its eastern neighbors. While Polish initiatives helped Ukraine make

some progress toward democracy, they were less successful in dictatorial Belarus.

C. Analysis

Over the past ten years, there has been a noticeable rise in materialism and

individualism in Russian society. In general, Russians from all demographic groups

desire to have stable job and a promising future so they may see their children succeed

and become richer than they were. Russians who grew up in the post-socialist era usually

view things differently than those who lived through the Soviet era. The tendency for

optimism among younger generations is commonly seen as a result of this age disparity.
They usually exhibit higher levels of future optimism and are more receptive to

integrating unfamiliar ideas. Poland, on the other hand, adopted democracy very fast.

Throughout the 1990s, the National Democratic Institute supported the development of a

multiparty political system by helping both center-right and center-left parties in setting

up local affiliates across the country, enlisting the support of youth and women, and

establishing and enhancing communication channels between party leadership and

members.

CHAPTER III: ECONOMIC SYSTEM

A. Russia | Market Economy

The Russian government pursued a number of drastic reforms after the Soviet Union

fell apart in 1991 in an effort to move away from a centrally planned and regulated

economy and toward one that was founded on capitalist principles. The establishment of

privately owned industrial and commercial ventures (using both foreign and Russian

investment) and the privatization of state-owned businesses were key elements of the

reforms. In order to promote privatization, the government provided Russian citizens

with vouchers that allowed them to purchase shares in privatized companies. However, in

reality, these vouchers were frequently sold for cash and accumulated by businesspeople.

A system for trading commodities and stocks was also devised.

However, the process of privatization was sluggish, and many businesses—

particularly in the heavy industries—remain in state hands. The purchasing and selling of

land was also a topic of intense discussion. The sale of land was made lawful by the
government in 2001, but only for urban dwelling and industrial real estate, which

together made up a very minor portion of Russia's overall land area. Similar legislation

for rural and agricultural areas was also being discussed at the start of the twenty-first

century. Despite being explicitly stated in the 1993 constitution, full private ownership of

land has not yet been put into practice. The transition to market-based agriculture was

delayed because structural reforms took longer to implement and more people clung to

the established communal system.

The average Russian experienced significant problems as a result of the changes that

began in the 1990s; the Russian economy shrank by more than two-fifths in the decade

after the fall of the Soviet Union. The country's monetary system was in chaos as a result

of the elimination of price controls, which led to a sharp rise in inflation and prices, a

sharp decline in the value of the ruble, the country's currency, and a sharp decline in real

earnings. By the middle of the 1990s, things started to get better, but a catastrophic

financial crisis in 1998 cut short the recovery, leading the government to devalue the

ruble significantly. Many banks went bankrupt, costing millions of people their entire life

savings. Corrective actions were put in place gradually. For instance, the government

increased the requirements for private bank license and stepped up its efforts to combat

tax evasion, which had become rife following the introduction of economic reforms.

Taxes on medium-sized and small businesses were lowered to allow for business

expansion, and the government started providing incentives for reinvesting profits back

into the domestic economy. Early in the twenty-first century, the initiatives had started to

benefit the Russian economy, which was showing indications of recovery and steady
growth. The steady income from oil exports enabled factory investments, while the

weakened ruble increased the competitiveness of Russian goods abroad.

Foreign direct investment was promoted in the post-Soviet era, although it was

restricted by unfavorable factors like state interference in business, corruption, and a lack

of strong legal systems. Even though the activity of such groups was curtailed in the early

21st century, it still presented significant barriers to both Western and Russian businesses.

An increase in violence by organized crime syndicates was a contributing factor to the

obstruction of Western investment. The Russian government's efforts to boost state

ownership in a number of industries, including oil and gas, aviation, and automobile

manufacture, served to deter foreign investment.

B. Poland | Mixed Economy

Poland's economy, which ranks fifth in terms of GDP and sixth in terms of nominal

GDP in the European Union, is industrialized, mixed, and has a developed market (PPP).

Poland's economy has struggled with weak growth since the middle of the 1970s, in large

part due to an outmoded industrial infrastructure, government subsidies that mask

inefficient production, and overly high wages relative to productivity. An economic

catastrophe was brought on by a soaring government deficit and hyperinflation in the late

1980s. After communism and Comecon dissolved, the Polish economy, which was

unsuited to the market-driven global economy, became more and more entwined with it.

To attain economic stability, the postcommunist administration employed a policy known

as "shock therapy." This plan attempted to postpone Poland's transition to a market

economy while also keeping inflation under control. As part of that strategy, the
government permitted large-scale private entrepreneurship, did away with price

restrictions, gradually reduced subsidies to state-owned businesses, and frozen wages.

In line with other advanced economies, Poland offers a wide range of public services.

There are several examples of this, such as: Universal free public healthcare, which

guarantees that all hospital stays, procedures, and visits for medical care, regardless of

length, are free;

Citizens who attend public universities on a bachelor's, master's, or doctorate degree

level are not required to pay tuition fees (and most universities, including the best

universities in the country, are public). One of the rare nations in both Europe and the

world that offers tertiary education without any fees is Poland;

All children aged 3 to 5 are entitled to 5 hours of free public day care per day, with

any additional hours being charged at symbolic rates (i.e., a maximum of 1 PLN per hour,

which is equal to 5% of the minimum hourly wage, meaning that 3 minutes of work at the

minimum hourly wage will cover the cost of 5 hours of additional childcare beyond the

free 5h/day provision). There is a large public childcare system in place for children

under three, and parents can use a child benefit (i.e., the 500+ benefit) to pay for all costs;

and

When compared to both European and international norms, Poland's maternity leave

policies are liberal (a mother can split her 12-month leave with her father and get

compensation equal to 80% of her prior wage).

Many of Poland's important sectors took some time to privatize. During communism,

the majority of the business, service, and trade sectors were directly owned by the state.
A surprisingly large portion of the population did engage in legal self-employment, and

small-scale private companies, such as shops, services, and eateries, were prevalent. In

addition, the majority of Poland's arable land was still privately owned. Government

initiatives to collectivize the population began in 1949 and ended in 1956. Agriculture

and manufacturing both underwent a progressive privatization after the fall of

communism. By the early 1990s, more than half of Poland's firms were privately owned,

as was the majority of the country's economy.

C. Analysis

Due to Russia's slow privatization process, many companies, notably in the heavy

industries, are still owned by the government. As a result of these developments, which

started in the 1990s, the typical Russian faced substantial difficulties; the Russian

economy declined by more than two-fifths in the decade after the demise of the Soviet

Union. The situation didn't change until the early years of the twenty-first century, when

the measures had begun to help the Russian economy, which was beginning to show

signs of recovery and stable growth. In a similar vein, Poland's economy has battled with

slow growth since the middle of the 1970s, in large part as a result of an outdated

industrial infrastructure, hidden inefficient production by government subsidies, and

excessively high pay in comparison to productivity. The post-communist government

used a strategy known as "shock therapy" to achieve economic stability. This strategy

sought to delay Poland's transition to a market economy while also keeping inflation

under control.
 CHAPTER IV: LEGAL SYSTEM

A. Russia | Civil Law

The civil law system is in use in the Russian Federation. Russian law consists of both

codified laws (such the Criminal Code and Civil Code) and uncodified laws that, in

general, must be in accordance with the pertinent codes. Legislation has the strongest

legal effect (compared with bylaws and other sources of law). Laws that are unlawful,

however, may be invalidated by the Constitutional Court.

The Russian legal system recognizes international law as a component. One can

consider case law to be a de facto source of law. This means that all courts, governmental

agencies, legal organizations, and people are bound by decisions made by the

Constitutional Court that contain interpretations of the law. To guarantee consistency in

legal procedure, decisions of the Supreme Court are also enforceable by lower courts.

In descending hierarchical order, the Constitution, Federal Constitutional Laws,

Federal Laws, Decrees of the President, Resolutions of the Government, and Legal Acts

of Authorized State Bodies are the primary sources of law in Russia.

The standards of international law that are widely acknowledged as well as

international conventions and treaties are considered to be an essential component of the

Russian legal system. When an international agreement specifies different norms than

those given by domestic law, its provisions are enforced. The Constitution, however, has

supreme legal authority within Russia and cannot be violated by any international

agreement.
 In order to fulfill its duties under a treaty, the Russian Federation must sign,

reciprocate, ratify, approve, accept, or accede to it. The Parliament approves foreign

agreements pertaining to human rights, the territorial integrity of Russia, rules for

international relations, and Russia's membership in international organizations.

In order to be recognized and upheld, decisions made by the European Court of

Human Rights in regard to the Russian Federation must not violate the Constitution.

The Constitutional Court, federal and provincial courts, and the Supreme Court are all

parts of the Russian judicial system. Federal courts include commercial courts, which

handle business issues, and general jurisdiction courts, which handle all other cases.

Regional courts include magistrates' courts for handling minor disputes and the

Russian regional constitutional (statutory) courts for issues involving the regional

constitutions (statutes).

The Constitutional Court, a distinct judicial entity in the Russian court system,

adjudicates cases involving the validity of particular laws.

B. Poland | Civil Law

Poland's legal system is based on civil law. Although Supreme Court rulings are

typically respected, common law jurisdictions do not have the same kind of enforceable

precedent that we are accustomed to. When the Europe Agreement was signed in 1991,

Poland formally established its association with the European Communities and their

Member States. Since then, Poland has made significant efforts to harmonize Polish Civil

law with European laws and standards. The Accession Treaty, which Poland signed in
2003 and through which the nation adopted the complete acquis communautaire, was a

crucial milestone. For a full implementation, there is still more work to be done.

Statutes need to be published in order to become enforceable. In Poland, a statute is a

generally enforceable legislation. The Deputies of the Sejm (similar to the

Representatives of the U.S. House of Representatives), at least 15 Senators, the President,

or the Council of Ministers have the authority to initiate legislation. If a bill receives the

signatures of 100,000 citizens, the Constitution also permits popular initiative.

The Supreme Court is the top court in Poland. The Polish system also has

administrative or special courts for family, labor and social insurance and a separate body

for economic arbitration, all of which are below the Supreme Court and serve as appellate

tribunals from the subordinate district courts.

Before signing legislation, the president may get the Constitutional Court's opinion on

its constitutionality. The President may also submit a follow-up application at any time to

review a law or a treaty. The act's applicability is unaffected by the application's making.

A law that violates the Constitution may be revoked by the Constitutional Tribunal.

Access to cases and laws from Poland and other nations that are relevant to a

particular issue is made possible via subject law collections. When comparing the legal

systems of other nations, using a subject law collection can be especially beneficial.

In civil law, the focus is primarily on natural and legal individuals. Legal entities

acquire legal capacities when they are enrolled into the relevant registry, whereas natural

persons have the capacity to carry rights and obligations from birth until death.
 The primary factors when taking legal activities, such as to acquire rights and

incur duties, are a natural person's age and competency. If a Polish court does not rule

differently, adults, defined as those 18 and older, have full capacity. Persons between the

ages of 13 and 18 as well as those who have been formally pronounced partially

incompetent, such as those who have mental diseases, mental retardation, or abuse

alcohol or drugs, fall within the limited competence category and are not allowed to file

lawsuits.

Legal entities, on the other hand, are able to take legal action as soon as they

acquire the necessary ability and operate through the appropriate statutory bodies. The

actions of the juridical person, however, must be approved by a legal representative, such

as a parent or custodian, if they are made by a person with limited capacity.

C. Analysis

The basic sources of law in Russia are the Constitution, Federal Constitutional Laws,

Federal Laws, Presidential Decrees, Government Resolutions, and Legal Acts of

Authorized State Bodies, in that order. The widely accepted norms of international law,

as well as international conventions and treaties, are regarded as vital elements of the

Russian legal system. Its rules are applied when an international agreement lays out

standards that differ from those provided by domestic law. However, no foreign

agreement may override the Constitution, which is the highest legal authority in Russia.

Poland's legal structure is founded on civil law, just like that of Russia. Although

Supreme Court decisions are often regarded with respect, common law jurisdictions lack

the same enforceable precedent that we are used to. The highest court in Poland is the
Supreme Court. A separate body for economic arbitration, as well as administrative or

special courts for family, labor, and social insurance, are all part of the Polish legal

system. All of these courts, which are below the Supreme Court and act as appeals courts

from the lower district courts, are administrative or special courts.

CHAPTER V: CONCLUSION

A. Russia

Russia is described as a pseudo-democratic country. The acceptance of a

compelled or imposed philosophy is prohibited, and the plurality of ideologies and

religions is promoted. Religious organizations have increasingly been involved in

"severe" human rights violations, according to the authorities. It is established that people

have the right to a multiparty political system. Laws must be written in accordance with

international law and values and receive public approval before becoming operative.

Despite the republics of the federation's freedom to establish their own states, Russian is

designated as the official tongue.

Market economies are the description of its economic structure. Key aspects of

the reforms included the creation of privately owned industrial and commercial

enterprises (using both foreign and Russian investment) and the privatization of state-

owned enterprises. Russian residents were given vouchers that they could use to buy

shares in privatized businesses by the government in order to encourage privatization. In

actuality, though, businesspeople routinely bought and traded these coupons for cash.

Also developed was a method for trading stocks and commodities.

 In the Russian Federation, civil law is practiced. International law is

acknowledged as a part of their legal system. As a result, the Constitutional Court's

rulings that incorporate legal interpretations are binding on all courts, governmental

institutions, legal associations, and individuals. Decisions of the Supreme Court are also

upheld by lower courts to ensure continuity in the legal process. The Russian Federation

must sign a treaty or reciprocate in order for it to be ratified, approved, accepted, or

acceded to. Foreign agreements affecting human rights, Russia's territorial integrity,

norms for international relations, and Russia's participation in international organizations

are approved by the Parliament.

B. Poland

Poland operates under a democratic political structure. Their advocacy of

democracy has its origins in the history of international collaboration of the

anticommunist resistance struggle. Throughout the 1990s, the National Democratic

Institute supported the development of a multiparty political system by helping both

center-right and center-left parties in setting up local affiliates across the country,

enlisting the support of youth and women, and establishing and enhancing

communication channels between party leadership and members. There were several NDI

trainees who went on to hold elected office.

The market in Poland is developed, and the economy is industrialized and mixed.

The government allowed for extensive private enterprise, eliminated price controls,

gradually lowered subsidies to state-owned companies, and frozen wages. Like other

developed nations, Poland provides a wide range of public services. Examples of this
include universal free public healthcare, which ensures that all hospital stays, treatments,

and visits for medical care, regardless of time, are free.

Civil law is the foundation of Poland's legal system. Natural and legal persons are

primarily the focus. Legal entities gain legal capacity upon registration with the

appropriate registry, whereas natural persons have the capacity to carry out rights and

obligations from the moment of birth until the moment of death. Age and competency of

a natural person are the main determinants when taking legal actions, such as to acquire

rights and incur duties. Adults, defined as individuals who are 18 years of age or older,

have full capacity, barring a different decision from a Polish court. The limited

competence category includes people between the ages of 13 and 18 as well as those who

have been formally declared partially incompetent, such as those who have mental

illnesses, mental retardation, or abuse alcohol or drugs. These people are not permitted to

initiate lawsuits.
 CHAPTER VI: REFLECTION

A. Which of the two countries is easier to manage?

Between Russia and Poland, Poland turns out to be easier to manage. Firstly,

Poland has a different political system. Although both countries exercise individualism,

Poland in particular is purely democratic.

In a democratic country, people are free to start any type of business and work

together without restrictions. This benefit is also shared by democratic institutions.

Basically, there are no rules that must be followed in order to freely interact and work

together. Thus, one firm can aid another, which causes a wave to grow and include the

entire nation. As a result, economic growth becomes more visible both domestically and

globally. Many entrepreneurs are already aware of this. Because of this, most enterprises

in a democratic nation will have reached nearly perfection.

When it comes to the economic system, Poland is renowned for its mixed-type

nature. A mixed economy protects private property and permits some economic freedom

in the use of capital, but it also permits government intervention in the economy to

further social objectives.

Neoclassical theory claims that mixed economies are less effective than pure free

markets, but proponents of government intervention claim that the fundamental

requirements for efficiency in free markets, like equal information and rational market

participants, cannot be realized in real-world applications.

B. Which of the two countries is harder to manage?

Due to the serious threats it poses to businesses, Russia tends to be challenging.

For entrepreneurs, its pseudo-democratic political structure itself sounds dangerous.

A governmental system that considers itself democratic but gives its constituents

no genuine option is referred to as pseudo democracy. This lack of choice may result

from a small number of diverse parties that are eligible to run for office, firmly

established power structures that are unaffected by votes, the absence of a "none of the

above" voting option for voters who favor changing the status quo, a lack of direct

democratic processes, etc.

Since the government still controls the industry, it only makes sense for business

owners to believe that their company is in danger. The worst part is that they don't realize

how the nation's leader will feel about their organizational culture.

Russia supports a market economy in terms of its economic structure. Because

wealth tends to produce riches, there is inequality in wealth and mobility. In other words,

it's simpler for rich people to get richer than it is for poor people to get rich.

There is also a tendency for the social safety net, which includes programs like

unemployment insurance, Social Security, and Medicare, to be reduced because these

programs are funded by taxes. Finally, poor working conditions can result from a lack of

government regulations because health and safety are expensive, which reduces profits.

Furthermore, environmental damage results from a lack of government regulations

because it is typically more expensive to produce in an environmentally sound manner,

which lowers profits.

C. What are the most important points a manager should remember in managing

Russia?

If a manager is trying to analyze how their business will adapt to Russia, the first

thing he has to take in mind is to do an intensive research before engaging in it. He now

knows how difficult it is to expand their business to this country. However, if he really

wants to pursue it because he believes that they would gain more profit by choosing to

expand in Russia, he might as well be smart in the moves that he is going to carry out.

A manager needs some familiarity with Russia's political past to comprehend

business culture there. With the help of this framework, we can gain some understanding

of why contemporary Russian businessmen appear to prefer following unwritten rules to

following formal laws and other authoritative structures. In the same way, it will clarify

why establishing relationships is essential to doing business successfully in Russia.

Because of the state's previous lack of trustworthiness, the contemporary culture places a

high value on intimate personal ties and allegiances. This is something that a manager

needs to be aware of and give the proper amount of time to, in person, making friends

with the correct people.

D. What are the most important points a manager should remember in managing

Poland?

As mentioned, Poland is easier to manage. This means that a manager doesn’t

have to worry much about the things that could potentially hinder their plan of expanding

their business. However, even though that is the case, there are still things that have to be

done in order to attain success in the long run.

 There are several concerns that must be overcome when a company decides to

relocate. It is vital to make decisions regarding the organization's structure, the

acquisition of the required licenses, familiarization with rules and tax law, location

selection, and Poland's long-term development strategy. An extensive and trustworthy

business analysis should come before starting a new firm or moving an existing one. And

finally, study the Polish market. Finding the greatest venues, sales leads, and potential

customers
 CHAPTER VII: REFERENCES

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• Smogorzewski, Kaziemierz Maciej. (2020). Poland. Retrieved from:

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• Evason, Nina. (2017). Russian Culture. Retrieved from: https://bit.ly/3SMKS7R

• NDI. (2021). Poland. Retrieved from: https://bit.ly/3Ru3Hvu

• Brittanica. (n.d). Economy of Russia. Retrieved from: https://bit.ly/3CnUIrE

• Brittanica. (n.d). Economy or Poland. Retrieved from: https://bit.ly/3SsNVCH

• Thomson Reuters. (2022). Legal systems in the Russian Federation: overview.

Retrieved from: https://tmsnrt.rs/3Sva5UK

• Pritzker Legal Research Center. (2020). Poland: International Team Project.

Retrieved from: https://bit.ly/3LWAg4g